1. Know the market. There is a lot of competition for multifamily properties today.
2.. Work with an experienced commercial broker who specializes in smaller multifamily properties.
3. Have your initial investment and financing in place before you look for a property.
4. Join Arizona Multifamily Association's special interest group for owners of 15 or less units.
5. Ask your broker to help you to assemble the teams you will need to be successful if you don't already have these in place. Attorney, CPA, property inspection, property management company. The most important step in buying income property is to do thorough due diligence.
6. Know your strengths and limits. This is particularly important because smaller properties may have deferred maintenance, need upgrades, and/or have problem tenants. How much do you want to take on?
7. Remember that when you buy income property, you become a small business owner. Owning real estate directly is not a passive business. You must manage it carefully and attentively.
8. Read all the books you can read on owning and managing residential and multifamily properties. There are also some good web sites you can visit.
9. Know the Arizona Landlord/Tenant laws. You can find a full copy on the web site of the Arizona Secretary of State.
Jan 21, 2012